The European Union Will Loan 35 Billion Euros to Ukraine

Ursula von der Leyen, President of the European Commission, announced during her visit to the capital of Ukraine that the EU will provide a loan of 35 billion euros to the country. On Friday, September 30, during a joint press conference with Volodymyr Zelensky, President of Ukraine, she stated that this loan will be allocated for energy supply, strengthening air defense, and purchasing weapons by Ukraine. Volodymyr Zelensky also urged Western allies and supporters of Ukraine to approve the strategy his government has set out under the title 'Victory Plan' before the end of the current calendar year. The renewed visit of the European Commission President to Kyiv is aimed at discussing financial aid to Ukraine. Ms. von der Leyen, who has recently been reappointed for a second term as President of the European Commission, added that Ukraine needs the continued support of the 27 member countries of the Union to counter the military aggression of Russia. This new loan is part of coordinated plans by the G7 countries to use the frozen assets of Russia in Western banks to assist Ukraine. In the press conference on Friday, Volodymyr Zelensky said, 'We will primarily use this 35 billion for energy supply and weapons, as well as for building shelters in kindergartens, schools, and universities. These are among our major shortages.' The Ukrainian President also added, 'In terms of weaponry, our priority is domestic products such as drones and missiles. Our long-range drones can attack enemy positions and are cheaper than the drones provided by allies to Ukraine.' Shortly after Russia's invasion of Ukraine, the G7 countries froze about 300 billion dollars of Russia's foreign currency reserves in Western banks. They have promised to use these funds to assist Ukraine, but decision-making on the best way to utilize these funds took months. Ursula von der Leyen continued in the press conference in Kyiv, stating, 'Russia is ruthlessly attacking your civilian energy infrastructure with the aim of drowning Ukraine in darkness and cold. I announce here that the European Union will stand by you to help secure energy.' She said on Thursday before her trip to Kyiv that 160 million euros from the interest on the frozen Russian assets will be allocated for humanitarian and immediate assistance to the people of Ukraine during the winter. The latest assessments indicate that due to Russian attacks, Ukraine's electricity production capacity has decreased by about 9 gigawatts, which according to Ms. von der Leyen is equivalent to 'the electricity production capacity of three Baltic countries.' She added that the EU's plan includes repairing and restoring 2.5 gigawatts of electricity production capacity within Ukraine and increasing electricity exports by about 2 gigawatts. Volodymyr Zelensky, who is set to travel to Washington next week, announced that he will discuss the 'Victory Plan' he has formulated with Joe Biden, the President of the United States. Mr. Zelensky stated, 'The majority of the provisions of this plan depend on his (Joe Biden's) decision. Of course, the support of other allies is also important, but some specific items in this plan depend on the level of support and goodwill from the United States.' The Ukrainian President has not yet disclosed the content of this plan and has only mentioned that its goal is to create conditions and terms acceptable to Kyiv. He added, 'All components of this plan are based on the rapid decision-making of our allies. These decisions must be made between October and December, and this process should not be delayed.' Vladimir Putin, the President of Russia, has stated that his country is only willing to start peace negotiations if the occupied regions of Ukraine are annexed to Russia and Kyiv's plan to join NATO is abandoned. In contrast, the Ukrainian President has repeatedly emphasized that the Russian army must withdraw from all occupied areas and that the borders of the two countries should return to the post-Soviet era. The Russian Foreign Ministry stated on Friday that the European Union has 'lost its mind' and is heading towards bankruptcy by allocating more funds to military assistance for Ukraine.